Fastest growing regional areas for property investment in 2025

Are you considering investing in a regional property market in 2025?

Regional Australia continues to offer exciting opportunities for investors and homebuyers alike, with many areas seeing strong growth and affordability compared to major cities. This guide breaks down how regional property markets performed across the country in 2024.

Let’s dive into the big picture of how regional markets are shaping up and what trends are driving their performance.

How did regional markets perform in 2024?

In 2024, Australia’s regional property markets remained resilient, often performing on par with or better than capital cities. CoreLogic data reveals that dwelling values across regional areas rose by +6.0 per cent over the course of 2024, outpacing the +4.5 per cent growth seen in capital cities. This highlights the sustained appeal of regional areas, driven by affordability, lifestyle benefits, and the increased flexibility of remote working, although there was clear diversity across different states.

While demand for regional property remained strong, the year also revealed signs of cooling in some markets. Rental conditions started to ease, with national vacancy rates rising to 1.8 per cent in October, up from a low of 1.4 per cent the previous year. This indicates that while the market is still competitive, tenants may find a bit more breathing room compared to the peak rental crunch of earlier years.

Overall, regional markets continued to attract buyers and renters looking for more affordable alternatives to the major cities. With steady growth in property values and easing pressure in some areas of the rental market, regional Australia remained a key focus for investors in 2024, setting the stage for further opportunities in the year ahead.

What are the fastest-growing regional towns in Australia?

CoreLogic’s latest Regional Market Update recorded the following regional growth hotspots over 2024:

• Geraldton, WA: Dwelling values surged by +28.7 per cent over the year, adding more than $100,000 to the median value.
• Gladstone, QLD: Experienced a significant annual growth of +27.2 per cent.
• Townsville, QLD: Saw dwelling values increase by +26.9 per cent over the year.
• Bunbury, WA: Also featured prominently with notable annual growth in dwelling values of +24.5 per cent.
• Busselton, WA: Capped off the top 5 list with annual gains of +21.2 per cent.

These figures highlight the robust performance of regional markets, particularly in Queensland and Western Australia, driven by factors such as affordability, lifestyle appeal, and economic activities like mining and tourism.

Let’s now dial down into specific regions state-by-state.

Top Regional NSW growth markets in 2024

Regional NSW towns that have posted outstanding growth over the past 12 months include:

• Lismore: Located in the Northern Rivers region, Lismore saw annual growth of +13 per cent in 2024, with a median dwelling value of $537,799, reflecting its appeal as a vibrant regional hub with strong community ties.
• Muswellbrook: Nestled in the Hunter Region, Muswellbrook experienced +9.1 per cent annual growth, reaching a median dwelling value of $466,418, driven by its proximity to mining and agriculture industries.
• Singleton: In the heart of the Hunter Valley, Singleton recorded +7.2 per cent annual growth and a median dwelling value of $639,795, benefiting from its wine region charm and local economic activity.
• Byron Bay: Known for its iconic beaches and laid-back lifestyle, Byron Bay achieved +7.1 per cent annual growth, with a median dwelling value of $1,977,749, cementing its position as a sought-after coastal destination.
• Griffith: Situated in the Riverina region, Griffith’s strong agricultural base contributed to +6.8 per cent annual growth, bringing its median dwelling value to $515,005 as it continues to attract investors and families alike.

Top Regional Victoria growth markets in 2024 

CoreLogic's data shows that both the Melbourne and Regional Victorian property markets struggled in 2024 relative to most other markets. As a result, only four regions saw positive growth over the year, all notably below the state's median regional property price.

• Mildura - Buronga: Situated on the Murray River, Mildura - Buronga saw annual growth of +6.1 per cent in 2024, with a median property price of $434,972, driven by its appeal as a key agricultural and tourism hub.
• Swan Hill: Known for its historic charm and riverside location, Swan Hill recorded +4.8 per cent annual growth, with a median property price of $423,141, benefiting from its strong local economy and affordable housing.
• Shepparton - Mooroopna: Located in Victoria’s Goulburn Valley, Shepparton - Mooroopna achieved +3.8 per cent annual growth, with a median property price of $461,813, supported by its thriving agricultural industry and regional connectivity.
• Horsham: Positioned in the Wimmera region, Horsham experienced +3.2 per cent annual growth, with a median property price of $364,975, reflecting its appeal as an affordable and liveable regional centre.

Top Regional Queensland growth markets in 2024

Queensland was a star performer throughout 2024, both for regional and metropolitan property markets. The top five movers for the year according to CoreLogic were:

• Gladstone: A key industrial hub on the Capricorn Coast, Gladstone led the way with +27.2 per cent annual growth in 2024, reaching a median property price of $490,427, driven by its role in Queensland’s mining and LNG industries.
• Townsville: Located in tropical North Queensland, Townsville saw +26.9 per cent annual growth, with a median property price of $518,082, benefiting from its diverse economy and strong regional infrastructure.
• Rockhampton: Known as the gateway to the Capricorn Coast, Rockhampton experienced +21.0 per cent annual growth, with a median property price of $502,195, reflecting its appeal as a regional centre for agriculture and resources.
• Mackay: A bustling coastal city with a strong connection to Queensland’s mining sector, Mackay recorded +19.2 per cent annual growth, with a median property price of $547,894, cementing its reputation as a lifestyle and investment hotspot.
• Warwick: Nestled in the Southern Downs, Warwick achieved +18.9 per cent annual growth in 2024, with a median property price of $468,337, thanks to its charming rural lifestyle and affordability.

Top Regional South Australia growth markets in 2024

South Australia was another standout state in 2024, with a number of its regional markets experiencing double-digit growth.

• Murray Bridge: Situated along the River Murray, Murray Bridge recorded +19.0 per cent annual growth in 2024, with a median property price of $456,736, thanks to its mix of rural charm and growing regional infrastructure.
• Victor Harbor - Goolwa: A popular coastal destination on the Fleurieu Peninsula, Victor Harbor - Goolwa saw +11.6 per cent annual growth, reaching a median property price of $710,064, driven by its appeal as a lifestyle and retirement hotspot.
• Port Pirie: Known for its industrial heritage and affordability, Port Pirie achieved +10.9 per cent annual growth in 2024, with a median property price of $256,509, attracting investors seeking value in regional South Australia.
• Mount Gambier: Nestled near the Victorian border, Mount Gambier saw +10.6 per cent annual growth, with a median property price of $452,110, bolstered by its strong local economy and scenic attractions like the Blue Lake.
• Whyalla: A key industrial town on the Eyre Peninsula, Whyalla experienced +7.8 per cent annual growth, with a median property price of $255,009, reflecting its appeal as an affordable option for regional living and investment.

Top Regional Western Australia growth markets in 2024

While SA and Queensland delivered strong results in 2024, the clear outperformer for the year was Western Australia, housing the lion's share of top growth markets.

• Geraldton: Positioned on the Coral Coast, Geraldton led regional growth with +28.7 per cent annual growth in 2024, reaching a median property price of $455,187, thanks to its mix of affordability and appeal as a coastal hub.
• Bunbury: Located in WA’s South West, Bunbury recorded +24.5 per cent annual growth, with a median property price of $640,344, driven by its vibrant community, strong amenities, and proximity to Perth.
• Busselton: A sought-after lifestyle destination, Busselton saw +21.2 per cent annual growth in 2024, with a median property price of $898,993, reflecting its reputation for beautiful beaches and premium properties.
• Albany: Known for its historic charm and rugged coastal beauty, Albany experienced +17.4 per cent annual growth, with a median property price of $586,741, appealing to both families and retirees.
• Broome: Situated in the Kimberley region, Broome achieved +11.5 per cent annual growth in 2024, with a median property price of $587,068, driven by its unique mix of outback and coastal lifestyle opportunities.

Top Regional Tasmania growth markets in 2024

While Hobart ended 2024 with slight negative growth, regional Tasmania did register some solid growth markets over the course of the year.

• Burnie - Somerset: Located on Tasmania’s northwest coast, Burnie - Somerset recorded +8.9 per cent annual growth in 2024, with a median property price of $435,844, driven by its coastal charm and affordable housing options.
• Ulverstone: Known for its picturesque setting along the Bass Strait, Ulverstone experienced +6.6 per cent annual growth, with a median property price of $516,548, appealing to families and retirees seeking a relaxed lifestyle.
• Devonport: A key port city in the north of Tasmania, Devonport saw +2.5 per cent annual growth in 2024, with a median property price of $460,446, supported by its strong connectivity and vibrant local economy.
• Launceston: Tasmania’s second-largest city, Launceston achieved +2.4 per cent annual growth, with a median property price of $540,658, offering a blend of heritage charm and modern amenities that continue to attract buyers.

Investing in regional property markets

Based on the above you should have a good starting point for researching specific regional markets. Like any location, you need to look at a combination of factors when analysing regional property – including population, economic growth, affordability, rental yield and capital growth.